Statutory Consolidated Financial Statements

A consolidated financial statement is a report of a company’s financial position. It displays results of a group of companies as if it were a single entity. These are used to gauge the health of the overall company, rather than just analyzing the performance of a single entity. The statements include:

Consolidated balance sheet

Consolidated income statement

The challenge here is to reconcile and report on consolidated figures using the required reporting principles, whether that’s US GAAP or IFRS. This can be especially difficult when data is collected using different interest rates, currencies or reporting standards. Through this process, intercompany transactions are reconciled and eliminated in order to get a true picture of third party transactions. Automated financial intelligence is an essential tool here. In order to maintain data integrity and avoid errors in the consolidation process, automated financial intelligence uses a single source of data. They eliminate intercompany transactions, capture retail interest and currency rates, and report on calculations in compliance with the reigning accounting standards so that final reports reflect the truest version of data.